Axreit
Current Year Quarter 30.06.2008
EARNINGS PER UNIT (sen) ## 3.75
DISTRIBUTION PER UNIT (sen) 3.76

(sen)7.40*Includes the 1st interim income distribution of 0.75 sen per unit paid on 20 February
2008.

This post has been edited by ante5k: Aug 5 2008, 09:12 AM

may i know @1.68 today, what is the exact yield?

is it=- 7.4 x 2 = 14.8 cent/ 168 (today's price) = 8.8% Gross (Nett 8.8 x 0.85 = 7.48%?)

Yup, if annualised distribution is 14.8. You calculation basically right.

It has proposed a private placement of 120 million new share.

Aiyoh, more dilution to come
Any idea what is this money used for?

wei... stop diluting my favourite reit stock lar ...

edited to add ... okaylar, u can dilute but make sure my dividend go up up up. and give bonus shares to existing holder from the 120 million

This post has been edited by ante5k: Aug 5 2008, 06:02 PM

If the money is used for better yield accretion, then I wouldn't mind the dilution. We have to see first what is the money used for to make a better decision.

i have about 48000 unit, will i be given the right for private placement?

The money raised will be used to reduce the borrowing and possible newer acquistion. New acquisition might lead to higher earning ahead to minimise the dilution while making it more diversify and more sizeable to attract instituitional investors particularly foreign investors. In Reits, size does matter to attract instituition investors and foreign fund managers.
At time being, Malaysia reits still consider very small in size compared to overseas. You need some reit size that at least more than 1 billions and above to attract large instituitional investors and foreign fund managers.

In the view of reduce borrowing, it is good for the company if future interest rate is going to rise. But dilution might be a disadvantage for the existing shareholders. But if those private placement is being placed out at higher price (buyers willing to take at high price) that it can be view as positive factor as well.
I think they will reduce the borrowing in order to have more spare capacity in term of gearing for future new acquisiton. My opinon only.

Normally, private placement will be placed at an average market price.

So only time will tell how it will affect and the dilution situation. Previously the 50 millions private placement is not reducing or diluting the existing shareholder yield instead it increased the earning from the new acquisition made.

In the future, monitor how the dilution or precisely the EPS or distribution per share, if the yield is still staying at roughly 7 or 7% above, while FD rate stay stagnant then I find not much reason to sell it, but if dilution problem occur resulted lower EPS then might consider to sell it if FD rate is going to rise (which I highly doubt it would be more than 0.5%)

No, private placement mean private already mah.

This post has been edited by cherroy: Aug 5 2008, 08:18 PM

I agree with your first point on further acquisitions. That was why I said if this would be yield accretive, then it would be good. Yield accretive aside, we need to see if this acquisition would increase or decrease their average ROI. This is the main driver for the price in my opinion. Say now their average ROI is 8%, but if the acquisition has an ROI of 7%, that is not good at all. They should aim to get at least 8% or more to sustain their earnings. Then the dilution effect will really disappear. If the acquisition resulted in lower ROI, then we will still see the dilution.

Just my 2 cents

Yes you are right. If the company management is doing like as you said, then they are not doing a good job at all.

Ah, I finally understood another asset class
Before this, I understood little of stock markets even.
So, I urge everyone who wants to invest, invest in something you "UNDERSTAND"

Cherroy would you mind giving a take down on AMFIRST (5120)?

I had it also.

Its yield is pretty attractive also around 7-8%. But downside is its relied solely on it major shareholder AMBank for the tenant which is also secure tenant. Got pros and cons for this kind of major shareholder as tenant as it might have contradict interest.

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Added on August 6, 2008, 4:27 pmMore acquisition ahead expected from Axreit.

http://biz.thestar.com.my/news/story.asp?f...91&sec=business

This post has been edited by cherroy: Aug 6 2008, 04:27 PM

Thanks for the information cherroy. Am thinking of moving in as my target price is 0.86-0.87

Amfirst posted a quite good result, 2.24 cents for the lastest Q.

wassup with STAREIT? now 0.84!!!

Ex-distribution mah, deduct 4 cents out lor.

anyone know when is the ex-date for axreit?

Why not check the announcement?
15 August.

thanks just now was surfing with my phone.. some website and java not supported